Phoenix Auditing

Employee State Insurance

  1. Which are the Entities covered under ESIC?
  2. ESI registration eligibility?
  3. Benefits of ESI Registration?
  4. What are the documents required for ESIC Registration?
  5. What is the process after verification of form?
  6. What is the procedure for filing of Returns?
  7. What is the amount of Contribution to be made by Employee and Employer?
  1. Which are the Entities covered under ESIC?
  • Shops
  • Restaurants or Hotels only engaged in sales.
  • Cinemas
  • Road Motor Transport Establishments;
  • Newspaper establishments (which is not covered under the factory act)
  • Private Educational Institutions
  •  ESI registration eligibility?
  • Entity having more than 20 employees who have a maximum salary of Rs. 21,000/- or less per month has to mandatorily register itself with the ESIC.
  • Benefits of ESI Registration?
  • Medical Benefits to an employee and his family members
  • Maternity Benefit to the women who are pregnant (along with paid leaves)
  • If the death of the employee happens while on work – 90% of the salary is given to his dependents every month after the death of the employee / disability of employee
  • Old age Care Medical Expenses
  • Funeral Expenses
  • Employees are entitled for sick pay benefits
  • What are the documents required for ESIC Registration?
  • The documents required for the registration are –
  •  A registration certificate obtained either under the:
  •  Factories Act
  •  Shops and Establishment Act
  •  Certificate of Registration in case of Company, and Partnership deed in case of a Partnership
  •  Memorandum of Association and Articles of Association of the Company
  •  A list of all the employees working in the Establishment
  •  PAN Card of the Business Entity as well as all the Employees working under the entity
  •  The compensation details of all the employees
  •  A cancelled cheque of the Bank Account of the Company
  •  List of Directors of the Company
  •  List of the Shareholders of the Company
  •  Register containing the attendance of the employees

After collecting all the above-mentioned documents the following procedure is to be followed for the registration of the ESI:

a. Form No – 1 (Employers Registration Form) is to be downloaded and filled.

b. After downloading the PDF version of the form and filling it, it has to be submitted on the website itself along with the above-mentioned documents.

  • What is the process after verification of form?
  • Once the verification of form is done , government will issue 17 digit unique number
  • The employee who is registered under this scheme will provide the employer with the filled form and photographs of his own family members as a part of the process of registration and will get an ESI card after registration
  • Any change in the company or its employees will be intimated to ESIC
  • What is the procedure for filing of Returns?
  • ESI Returns has to be filed twice a year. However you need the following documents
  • Register of Attendance of Employees
  • Wages Register
  • Form – 6 Register
  • Monthly Returns and Challans
  • What is the amount of Contribution to be made by Employee and Employer?
  • Total Contribution for ESI is 6.5% of which Employer contributes 4.75% and Employee Contributes 1.75%.